9911796707
TMI Blog1986 (12) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... and also travelling expenses. In ground No. 1, the dispute is regarding sums of Rs. 8,116 and Rs. 605. The ld. Sr. departmental representative Mr. R.K. Bali, submitted that once the boarding charges have been considered to be 'entertainment' by the CIT(A), in respect of dealers, even lodging charges and presentation articles should have been placed on the same footing. The CIT(A) has dealt with this issue in para 10.2 of his order. Regarding the presentation articles, his observations are: "I would direct the ITO to find out the assessee's classification of allowable and disallowable expenses as given above in light of r. 6B. The expenditure incurred on items of presentation articles is excess of Rs. 50 on each article would be inadmissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even in past. We are in agreement with the ld. CIT(A) that loading expenses of the foreign dealers and their travelling in the country with presents given to them within stipulated limit cannot be termed as entertainment expenses. The action of the CIT(A) therefore, in respect of this issue is also hereby confirmed. 4. Ground No. 3 is academic in nature and it is in respect of ground Nos. 1 and 2 disposed of earlier. 5. Fourth ground is in respect of disallowance of Rs. 47,436 disallowed by thew ITO as replacement of cost of motors but allowed by the CIT(A) as repairs, the ld. Sr. departmental representative submitted that there was no proof as to how the scrap of old motors was sold out and that it was a case of replacement of old m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,766 under 'advertisement' by treating items of Rs. 10,053, Rs. 28,720 and Rs. 13,000 as not relating to 'advertisement' for the purpose of s. 37(3A). The learned Sr. Departmental representative in respect of this relied on the order of the ITO but could not controvert any of the facts detailed in paras 17,18 and 19 of the CIT(A)'s order. After taking into consideration the rival submissions and looking to the facts in the background, we are unable to interfere in the finding of the CIT(A). The ITO has dealt with this issue paras 8 to 10 of his order whereas the CIT(A), in paras 17 to 19. The ITO disallowed 50 per cent of total expenses on advertisement and publicity covered under s. 37(3A). The disputed items were advertisements in small ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails are required to be furnished and once the assessee has put in its claim in the return, its claim under s. 32(1)(iv) was admissible and rightly allowed to be so by the CIT(A). 8. The next ground is regarding multiple shift allowance on generator. The ld. Sr. departmental representative submitted that there is no proof that generator worked for multiple shifts. Going through the finding of the CIT(A) on this issue and looking to the claim pressed by the learned counsel for the assessee, we are unable to appreciate that what proof there can be for running if the generator in a multiple shifts. Once the factory as such has run for multiple shifts and generator is there it is always kept ready and can be used any time. The assessee's c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
